Apollo Pipes Limited has informed the Exchange regarding a press release dated August 07, 2025.
APOLLOPIPE · price
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Apollo Pipes Limited reported weak Q1FY26 (quarter ended June 30, 2025) results with consolidated revenue declining 11% year-on-year to Rs 275 crore and profit after tax falling 35% YoY to Rs 8.1 crore. Sales volume dropped 5% YoY to 25,315 tons, while EBITDA shrank 29% YoY to Rs 20.7 crore, with margins contracting to 7.5% from 9.4% a year earlier. Management attributed the softness to macroeconomic headwinds, US tariff uncertainty, slowdown in government spending, weak PVC resin prices, weak retail demand, and an early monsoon that hurt both home plumbing and agricultural piping segments. Despite the weak quarter, the company remained net cash positive at Rs 52 crore and reiterated plans to expand capacity from 225,500 tons to 286,000 tons over the next two years via a new Varanasi plant and brownfield expansion. Management targets 25%+ revenue CAGR over the next three years, funded entirely from internal cash flows without leveraging the balance sheet.
Broad-based declines in volume, revenue, and profitability could weigh on the stock in the near term, but a debt-free balance sheet, ongoing capacity expansion, and management's optimism about a demand recovery from construction and government spending provide some support for long-term investors.